Alfa Romeo Forum - View Single Post - UK interest rates

Viking Dad · 16-05-2008

Ok - so today's challenge for me is to pick a UK mortgage deal from afar. Problem is have no feel for the UK economy at present.

Info I have to hand suggests the following:

1. Base rates have been lowered but not all lenders are following this as a result of the Credit Crunch.
2. Several banks have offered me 5 to 10 year fixed rate deals. Since banks are out to make money - this implies to me that they expect rates to fall in the medium to long term.
3. Inflation is up (3%) which would tend to drive interest rates up, but economic growth seems to be down which should push rates down again.

I'm tempted by an offset deal with 5 years discount at about 0,7% below the standard variable offset rate from my bank. But I'm being distracted by a life tracker at 0,34% above the bank's base rate.

Any thoughts from my learned Alfa friends on which direction rates are likely to head?

16-05-2008	#1 (Post Link)
Viking Dad AO Silver Member Join Date: Jun 2006 Location: Out of packing boxes..... Posts: 1,250 Member car: 159 ti 2.4	UK interest rates - up or down :confused: Ok - so today's challenge for me is to pick a UK mortgage deal from afar. Problem is have no feel for the UK economy at present. Info I have to hand suggests the following: 1. Base rates have been lowered but not all lenders are following this as a result of the Credit Crunch. 2. Several banks have offered me 5 to 10 year fixed rate deals. Since banks are out to make money - this implies to me that they expect rates to fall in the medium to long term. 3. Inflation is up (3%) which would tend to drive interest rates up, but economic growth seems to be down which should push rates down again. I'm tempted by an offset deal with 5 years discount at about 0,7% below the standard variable offset rate from my bank. But I'm being distracted by a life tracker at 0,34% above the bank's base rate. Any thoughts from my learned Alfa friends on which direction rates are likely to head?